Lone Star has confirmed that it is buying €960m of real estate loans from Deutsche Bundesbank.
The US investor has signed an agreement to buy the A and B notes of CDO Excalibur Funding 1.
Excalibur contains a portfolio of loans secured on European real estate assets, with a face value of approximately €960m.
It is the second acquisition by a Lone Star affiliate from Excalibur, following the purchase of a single loan secured by various tranches of the Windermere XIV CMBS from Excalibur in January this year.
The combined face value of both acquisitions amounts to approximately €1.4bn.
The latest acquisition is expected to be completed by the end of April.
It is anticipated that senior debt financing will be provided to the affiliate of Lone Star Real Estate Fund II by Citigroup and Royal Bank of Canada.
Hudson Advisors’ affiliates will provide the loan servicing and asset management on behalf of Lone Star Real Estate Fund II.
Jack.sidders@estatesgazette.com
